Yen Declines to Record Low Against Euro on Prospect of Higher ECB Rates

(Bloomberg) -- The yen slid to record low against the
euro as the prospect of higher interest rates may increase the
appeal of European assets to Japanese investors.

European Central Bank President Jean-Claude Trichet said
yesterday he has ``no intention'' to change market expectations
for a rate increase as soon as September after the central bank
kept borrowing costs at 4 percent. Policy makers may reiterate
that message later today. The yen has dropped 6.5 percent versus
the euro this year as Japan's 0.5 percent borrowing cost
encouraged investors to send money abroad.


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